China will no longer give subsidies for new solar power stations, distributed solar projects by commercial users, or onshore wind projects from the central government budget in 2021, the state economic planner said on Friday.
The new rule, effective from Aug. 1, follows a drastic fall in manufacturing costs for solar and wind devices amid booming renewable capacity in China, and will ease a backlog of subsidy payments that had exceeded 400 billion yuan ($62.64 billion).
Electricity generated from the new projects will be sold at local benchmark coal-fired power prices or at market prices, the National Development and Reform Commission (NDRC) said in a statement. Electricity prices for offshore wind and concentrated solar power projects that receive approvals in 2021 will be decided by the provincial governments where they are located.
The statement also encourages local government to roll out policies to support renewable power industries including solar and wind.
This article was originally shared by The Economic Times.